Which of the following documents will an auditor use to demonstrate an understanding of internal control?
A)Checklists,disclosures and procedures.
B)The audit report,internal control opinions and confirmations.
C)Workpapers,engagement letters and management representation letters.
D)Questionnaires,narratives and flowcharts.

Question

Quizplus · Accepted Answer

Questionnaires, narratives and flowcharts are tools commonly used by auditors to document their understanding of internal control. Checklists, disclosures and procedures are often used to document control testing procedures, but do not necessarily provide evidence of the auditor's understanding. The audit report, internal control opinions and confirmations are not used to demonstrate the auditor's understanding, but are the final output of the audit process. Workpapers, engagement letters and management representation letters are also important documentation for the audit process, but do not primarily demonstrate the auditor's understanding of internal control.

Which of the Following Documents Will an Auditor Use to Demonstrate